ITV looking towards pay-TV for prosperity

ITV chairman Archie Norman is expected to use this week's annual results presentation to stress that the broadcaster must move into the pay-TV market and significantly boost its production arm.

The results, achieved under his predecessor Michael Grade, are likely to show a sharp decline in pre-tax profits for the year to the end of December from £167 million to £75 million with revenue down from £2 billion to about £1.8 billion.

Norman, who has instituted a 12-week strategic review which begins before the arrival of new chief executive Adam Crozier, will tell shareholders the company must move beyond its roots as a broadcaster wholly dependent on television advertising and into pay-TV.

Looking forward: ITV chief executive Archie Norman

ITV has suffered hugely through its dependency on advertising and last year registered a statutory loss of £2.7 billion after writing down the value of its television channels.